Looking for guidance on below sale of real estate that was inherited by siblings after death of mother. The home was part of a trust.
The home was sold at approx $75k capital gain and have the following questions:
Is executor responsible for withholding taxes on behalf of the beneficiaries?
(California State and Federal)
Does the Trust need to file a tax return and report the capital gains or do the capital gains pass through to the beneficiaries and they would need to report the capital gains (California Sate and Federal) on their tax returns?
Are there any exemptions available for capital gains on this transaction or do the beneficiaries only get the benefit of getting a stepped up cost basis?
Appreciate any help here.
Thanks!
